Gold Prices Rise Ahead of Federal Reserve Meeting

Global gold prices have resumed their upward trend ahead of the US Federal Reserve’s upcoming interest rate meeting, according to Bloomberg.

The June futures contract rose to $3,290 per troy ounce, marking a recovery after a week-long decline.

The Fed is widely expected to keep rates unchanged. However, strong US labour market data and pressure from President Donald Trump could push policymakers towards lowering rates.

A signal of potential rate cuts would likely support gold prices. During periods of loose monetary policy, gold tends to rise as US Treasury yields fall and inflation expectations increase. In recent years, though, the metal has continued to climb despite relatively high rates.

Gold futures hit a record high in late April, surpassing $3,500 per troy ounce for the first time. This rally was followed by a brief correction. Demand eased after Trump suggested US tariffs on Chinese imports could be reduced.